Is Bonanza Creek Energy (BCEI) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Bonanza Creek Energy (BCEI) is a stock many investors are watching right now. BCEI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 7.93 right now. For comparison, its industry sports an average P/E of 18.75. Over the past 52 weeks, BCEI's Forward P/E has been as high as 8.16 and as low as 1.93, with a median of 3.36.
Finally, investors should note that BCEI has a P/CF ratio of 1.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.44. Over the past year, BCEI's P/CF has been as high as 3.65 and as low as 0.99, with a median of 1.84.
These are just a handful of the figures considered in Bonanza Creek Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BCEI is an impressive value stock right now.
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Bonanza Creek Energy, Inc. (BCEI) : Free Stock Analysis Report
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